Charlotte, North Carolina-based Albemarle Corporation (ALB) develops, manufactures, and markets engineered specialty chemicals for mobility, energy, connectivity, and health solutions. With a market cap of $11.5 billion, the company offers critical ingredients used in grid storage, automotive, aerospace, conventional energy, electronics, construction, agriculture and food, pharmaceuticals, and medical devices. The lithium giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Wednesday, Feb. 12.
Ahead of the event, analysts expect ALB to report a loss of $0.36 per share on a diluted basis, down 119.5% from $1.85 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect ALB to report loss of $1.49 per share, down 106.7% from $22.25 in fiscal 2023. However, its EPS is expected to rise 217.5% year over year to $1.75 in fiscal 2025.
ALB stock has considerably underperformed the S&P 500’s ($SPX) 25% gains over the past 52 weeks, with shares down 18.3% during this period. Similarly, it underperformed the Materials Select Sector SPDR Fund’s (XLB) 8.8% gains over the same time frame.
ALB’s underperformance can be attributed to lower energy storage and lithium market pricing.
On Nov. 6, ALB shares closed down more than 3% after reporting its Q3 results. The company’s revenue was $1.35 billion, falling short of Wall Street forecasts of $1.39 billion. ALB expects full-year revenue in the range of $5.5 billion to $6.2 billion.
Analysts’ consensus opinion on ALB stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 12 give a “Hold,” and two recommend a “Strong Sell.” ALB’s average analyst price target is $117.56, indicating a potential upside of 25% from the current levels.
